Income Tax Calculator
BIR
Graduated rates under Section 24(A)(2): nothing up to ₱250,000, then 20% to 35% on the excess. Shows the marginal and the effective rate.
This calculator does not carry current agency interest or dividend rates. You enter the rate, so a result is only as current as the figure you typed.
It is an estimate for planning, not an official quotation, and BIR's own computation is what governs. Confirm the figures before you commit to anything.
Every figure on this page is from Bureau of Internal Revenue's own published documents.
Last verified 1 source, listed below
Income Tax1. PHGuides is independent and not affiliated with BIR.
One caveat before the numbers
BIR’s page carries no effectivity date for this schedule. The bands below are what BIR publishes today, and this calculator carries them because a reader cannot supply them. That is not the same as a guarantee they are current. Check against BIR before relying on a figure for a filing.
The schedule
| Net taxable income | Tax |
|---|---|
| Up to ₱250,000.00 | 0% |
| Over ₱250,000.00 to ₱400,000.00 | 20% of the excess over ₱250,000.00 |
| Over ₱400,000.00 to ₱800,000.00 | ₱30,000.00 plus 25% of the excess |
| Over ₱800,000.00 to ₱2,000,000.00 | ₱130,000.00 plus 30% of the excess |
| Over ₱2,000,000.00 to ₱8,000,000.00 | ₱490,000.00 plus 32% of the excess |
| Over ₱8,000,000.00 | ₱2,410,000.00 plus 35% of the excess |
Marginal is not effective
The rate on your last peso is not the rate on your income. On ₱500,000.00 of net taxable income the marginal rate is 25% but the tax is ₱55,000.00, an effective rate of 11%.
| Net taxable income | Tax due | Effective rate |
|---|---|---|
| ₱250,000.00 | ₱0.00 | 0% |
| ₱400,000.00 | ₱30,000.00 | 7.5% |
| ₱500,000.00 | ₱55,000.00 | 11% |
| ₱800,000.00 | ₱130,000.00 | 16.3% |
| ₱1,000,000.00 | ₱190,000.00 | 19% |
| ₱2,000,000.00 | ₱490,000.00 | 24.5% |
People routinely refuse a raise believing it will cost them money. It cannot: only the excess above a threshold is taxed at the higher rate.
Net taxable, not gross
The input is income after deductions and exemptions, not your salary. For an employee that figure appears on BIR Form 2316. Minimum wage earners are exempt.
If you are self-employed the 8% option may beat this schedule entirely: see the freelancer tax comparison. The bands themselves, and what BIR does and does not publish about them, are in our income tax table guide. Filing deadlines are in ITR filing.
Sources
- Bureau of Internal Revenue | Income Tax, retrieved